China widens Japan export curbs, targeting drone makers, nuclear firms and defense institutes

Livestream Menu China expanded export controls targeting Japanese defense-linked entities. The moves came as the latest escalation in a campaign Beijing launched in January. Prime Minister Sanae Takaichi triggered a diplomatic spat with Beijing with comments over Taiwan. 7003. T-JP File photo: The Japanese national flag flies in front of the container pier in the Tokyo port. Toshifumi Kitamura | Afp | China on Monday blacklisted four Japanese government defense research institutes and imposed tighter export restrictions on dozens of other Japanese entities, escalating a months-long campaign to restrict Tokyo's access to dual-use goods, including rare earth minerals. The Ministry of Commerce added 20 entities, including the National Institute for Defense Studies and research centers for ground, naval, and air systems, to the export control list. Several units under Mitsubishi Electric and Mitsubishi Heavy Industries were also targeted. Domestic exporters, as well as overseas organizations or individuals, are prohibited from transferring Chinese-origin dual-use items to the named entities, according to the statement, adding that any ongoing activities must stop immediately. Separately, China added another 20 entities, including Mitsui E&S Co., drone maker Terra Drone Corporation, nuclear fuel processors, and multiple units of OKI Electric Industry, to a watch list requiring enhanced licensing scrutiny. Both actions take effect immediately. The ministry said it would apply stricter end-user and end-use reviews to watch-listed entities, and that exports involving Japanese military users, military applications or any end-use that could strengthen Japan's defense capabilities would not be approved. The measures mark the latest escalation in a campaign launched in January, when Beijing banned dual-use exports to Japan, including rare earth elements, permanent magnets and other critical minerals required for defense technologies. In February, China added 20 entities, including subsidiaries of Mitsubishi Heavy Industries, IHI Corp. and Kawasaki Heavy Industries, to its export control list and another 20 firms, including Subaru Corp., TDK Corp. and FUJI Aerospace Technology to the watch list. China has ratcheted up pressure on Tokyo after comments a hypothetical Chinese attack on Taiwan could trigger a military response from Tokyo, which drew criticism from Beijing. In a statement Monday, a spokesperson for the commerce ministry said Japan had shown no remorse since the February listings and had instead "accelerated" its push toward what Beijing characterizes as "new-style militarism" — including deploying offensive weapons and launching missiles overseas. Beijing urged Japan to "turn back from the wrong path," while insisting the measures would not affect normal bilateral economic and trade activities and that "law-abiding Japanese firms have no reasons to worry." Market reactions were mixed following the statement.